HolyTransaction recently decided to add Bitcoin Lightning Network support to its wallet. The move was made to help retail traders and investors tackle the issue of Bitcoin scalability by moving to the second layer of its blockchain.
The problem: Bitcoin transactions are expensive due to demand
Bitcoin is a crypto asset that is changing the world. The first cryptocurrency has seen a massive price shift recently, as it hit new records multiple times in 2020, and then in 2021. However, while its price is shooting up, that doesn’t change the speed at which the coin’s transactions are being processed.
If anything, the extra attention is slowing BTC down, making it more expensive. With more people trying to shift big amounts of money, they have to compete with other whales and wealthy investors and traders for transaction processors’ attention.
The best way to attract their attention and make them pick your transaction for the next block is to pay a higher transaction fee. While this is all well and good, it raises the average transaction fee for BTC payments to a level that often cannot be matched by small, retail traders.
Fortunately, all of these issues — the problem of speed, the issue of high transaction fees — can be resolved with a solution that has been around for quite some time, now: Bitcoin Lightning Network.
This is why HolyTransaction has decided to add support for it and make it cheaper and easier for BTC users to transact their coins, instead of having them wait and pay large fees just so they could send money in the first place.
The solution: Adding support for Bitcoin Lightning Network
Bitcoin Lightning Network is a Layer-2 scaling solution that significantly reduces the average price of transactions within the Bitcoin network. As you may know, the current average price per Bitcoin transaction is $31.14, and the only time that transaction costs were higher than this was on December 23rd, 2017, when you had to pay around $55 to send BTC.
Meanwhile, you don’t even get your transaction processed immediately, Instead, you have to wait for 10-30 minutes, provided that you paid enough, for your transaction to be processed. It is impractical, it leads to missing opportunities in the trading world, and it is way too expensive. This is why HolyTransactions has added Lightning Network support, which will reduce the average cost per transaction to less than $0.01. Also, you won’t have to wait for half an hour for your transaction to be processed — it will be done in 1-3 seconds.
There are, of course, certain limitations of the Lightning Network, as it is mainly meant for micro-transactions, so those sending large amounts of money should still take the ‘old way.’ But, HolyTransaction expects that the Lightning Network support will be of great use to many of its customers.
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